Rekha Rakesh Jhunjhunwala-backed Baazar Style Retail has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise money through initial public offering (IPO).

As per media reports, the IPO of Kolkata-based value retail chain will be a mix of fresh shares of up to Rs 185 crore and an offer-of sale (OFS) of up to1.68 crore by promotoer group and other selling shareholders.

Rekha Rakesh Jhunjhunwala, Intensive Softshare, Intensive Finance, Chandurkar Investments, Subroto Trading & Finance Company, Rajnish Gupta, Madhu Surana, Sabita Agarwal, Rekha Kedia, Shakuntala Devi, and D.K Surana HUF will collectively sell up to 127.19 lakh equity shares during the OFS. Rekha Rakesh Jhunjhunwala will sell up to 27.2 lakh equity shares.

5 things to know about Baazar Style Retail IPO

1. Company Profile: Since its establishment in fiscal year 2014, Bazaar Style Retail has emerged as a prominent figure in the value retail sector across West Bengal and Odisha. It extends its influence to key markets such as Assam, Bihar, Jharkhand, Andhra Pradesh, Tripura, Uttar Pradesh, and Chhattisgarh.

2. Company’s financials: In FY 2023, Baazar Style Retail recorded a profit of Rs 5.1 crore, up from a net loss of Rs 8.01 crore in the previous year. The company’s revenue surged by 43% to Rs 787.90 crore from Rs 551.12 crore in previous year. The revenue surge was driven by increased sales of apparel and non-apparel, along with store network expansion and growth in same-store sales post-Covid-19. The company has 153 stores in 140 cities as of December 31, 2023.

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3. Issue size: The Baazar Style Retail IPO, featuring a face value of Rs 5 each, consists of a fresh issue totaling Rs 185 crore and an offer for sale of up to 16.88 million shares by the promoter group and other selling shareholders.

4. Purpose: Reports say that the company will utilize the net proceeds of Rs 135 crore from the fresh issue for general corporate purposes and to prepay or repay some outstanding borrowings. Link Intime India is registering the issue, with Axis Capital, Intensive Fiscal Services, and JM Financial serving as book-running lead managers.

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5. Reservation: The company will distribute a minimum of 75% of the net offer proportionately to qualified institutional buyers, allocate up to 15% to non-institutional investors, and earmark up to 10% for retail individual investors. The offer will proceed through the book-building process.

Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before making any investment decision.

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